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View all search resultsPrabowo pushes greater state role to fuel his growth dream
Through policy decrees and institutional restructuring, Prabowo has tightened the state’s authority over fiscal resources and assets, as evident in his push for a more active role for state-owned enterprises (SOEs) in key industries and top-down approach to welfare.
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President Prabowo Subianto prepares to address an inauguration ceremony for new ministers and deputy ministers on Sept. 8, 2025, at the State Palace in Central Jakarta, following the first reshuffle of his administration. (Antara/Galih Pradipta)
P
resident Prabowo Subianto’s first year in office has been marked by a shift toward a greater state role in economic decision-making, expanding the power of state-owned enterprises (SOEs) and centralizing development decisions in pursuit of his 8 percent growth target.
Through policy decrees and institutional restructuring, Prabowo has tightened the state’s authority over fiscal resources and assets, as evident in his push for a more active role for SOEs in key industries and a top-down approach to welfare programs.
These include the nationwide rollout of free meals, the 3 million homes program, the so-called Red and White cooperatives, the establishment of food estates and Danantara, the country’s new state asset fund.
Experts say Prabowo’s economic posture, particularly in elevating the role of the state and SOEs, cannot be separated from his long-established military background.
“His worldview is a mix of nationalist idealism, military instinct and political pragmatism,” Deni Friawan, an economics researcher at the Jakarta-based Centre for Strategic and International Studies (CSIS), told The Jakarta Post on Thursday.
“With centralized power, he believes that ‘missions’ like the 8 percent growth and his development programs can be achieved.”
Read also: Prabowo claims 8% growth is possible through free meals program
